Member Info for cm22

Hi Kunningken, the key point is that they raised funds at decent valuation last summer.

Indeed Badsterman. Very nice for Lord Willets!

Still not really sure why LUCY went up today. The Authentic Brands story doesn't seem sufficient to engender that sort of a reaction.

Seems unlikely Gheko. There is normally a minimum holding period of 1 year...

Yeah, i think breaking that barrier could be good technically. Stars are aligning for this one. Great when technicals and fundamentals agree.

Yes, it was as high as 1.64 post market. This is a volatile one but nevertheless stands to benefit from the disinflation trade.

To add to your argument Qd22, Microsalt are working on a new version which reduces sodium intake by more than 50%.

Hi Trusted, they have talked about following the Kikkoman model having production close to market in every regional market. Reliability is a big factor in big brands using the Microsalt in their product, and being produced locally is a big part of that, especially after covid/Russian invasion.

Hi Seaman, the shakers are also in a supermarket chain in New Hampshire i think.

It is nice waking up to another new deal. I feel like there must be a million of these deals out there for the Microsalt shakers. Such an obvious product for supermarkets to add to their shelves. Especially higher quality chains who want to emphasize their healthy options.

On reflection the salt shakers were a good idea for Microsalt on its way to develop its business. They increase their profile with the public, while at the same time increasing their production scale. I understand that the big brands looking to incorporate the raw ingredient into their food are already sold on the product, but are waiting to see evidence that Microsalt can produce at scale and reliably. The shakers help them get to this point.

It makes sense. 50p is still a cheap price given where it is going to be after they ramp up production and they know that full well.
Avoids raising at a lower price which PIs overreact to.

It will be 1 year minimum before they sell any of the Microsalt stake. They always write in a minimum holding period.

Looking like a friendlier market going forward into 2023 as well TopCatz, as we await the FED pivot.

So 78% of $20 million is around $16 million to TEK, or am i missing something?

Fair point SirTradealot, i am projecting a bit there. But to my mind it doesn't really make sense for Cliff to get so excited and also for the IPO if what they are saying isn't founded in some sort of reality.

Let's look at what these portfolio companies have actually achieved in the last 5 year.

Bell has gone from 0 5 years ago to now being one of the leading players in the oxygen concentrator market. At the current run rate it will be selling tens of thousands of units annually, and even under the most pessimistic forecasts will ramp up production significantly making a profit within 1-2 years. That is incredible performance. BELL is the most advanced along the road of TEKs portfolio companies.

LUCY has gone from 0 5 years ago making an average product with no distribution to now establishing itself and being chosen by the worlds leading fashion brands to build their products.

Microsalt has grown massively in terms of private funding valuation, and will do so further when it IPOs. The interest in the product among major brands is real.

Guident has the best technology in the business and has already added its first customers. This is a VERY nascent industry and they will add more clients this year.

TEK have gone from 5p to 38p. That is extraordinary performance by anyone's standards. It has fallen back recently in one of the worst bear markets in history, but this is not a reflection on the underlying businesses which have probably had their best year from an operational standpoint. It is common for a lot of startups to never get off the ground but all 4 of these have actually done remarkably well. Perhaps some have a naivety about how long it takes for successful startups to scale up.

d.monies, if you bought in 2017 when it was at 40p that is really your problem. That was a rich valuation back then for sure. If you want to take your money and your trash talk elsewhere into some other stock then you are more than welcome to do that.

When i wrote it, those numbers were was correct. The point is you cherry pick which days you choose to look at. In a period which you say that TEK has been lagging its constituents, it has actually been outperforming them. If you include LUCY, TEK has still been outperforming slightly. It makes more sense to look at my 3 week period than just to look at the odd day when BELL goes up and TEK doesn't.

Giancotti, people are saying (including you) that it is weird that the portfolio companies are going up and TEK doesn't go up with them. I point out that BELL is down 24% for the year and TEK is up 5% for the year and you said that is not relevant to your argument.

It is also obviously wrong that a company has to be profitable before its share price goes up.

irrelevant to what Giancotti?

Year to date, TEK is up 5% and BELL is down 24% so maybe it isn't that strange. The reality is that this isn't a highly efficient market with traders arbitraging the differences day to day.

I think someone listening to you TopCatz! Rallied to 1.46 now.

BELL up, LUCY up. TEK down. Mystifying as ever. I guess it goes to show that a great deal of the day to day moves are just liquidity driven.